San Diego’s Peregrine Semiconductor said Monday that it has acquired power converter chip start-up Arctic Sand Technologies for $68 million.

Peregrine, a subsidiary of Japanese electronics giant Murata, said the deal beefs up its power converter semiconductor portfolio. Peregrine will tap its chip production expertise – it has shipped more than 3.5 billion units since it was founded in 1990 – to bring Arctic Sand’s technology to market in volume.

Spun out of the Massachusetts Institute of Technology in 2010, Arctic Sand has developed power conversion chips that it claims are smaller, thinner and more efficient than traditional conversion semiconductors. The technology is used for voltage management in smartphones, laptops and LED display panels.

The company has 26 employees and has raised $29.6 million in venture capital since it was founded.

“With this acquisition, Peregrine and Murata gain Arctic Sand’s disruptive technology, strong intellectual property portfolio and world-class team,” said Jim Cable, chief technology officer of Peregrine and global research and development director at Murata Manufacturing. “We’re one step closer to dramatically smaller, lighter, faster and more efficient power solutions.”

Peregrine has 496 employees worldwide, including about 415 in San Diego. It was purchased in 2014 by Murata for $465 million.

Murata plans to add Arctic Sand’s power conversion semiconductors to its product line up for not only telecommunication customers but also data communications and industrial electrical markets.

Arctic Sand claims its technology reduces the space occupied by power components by 50 percent. It also cuts the power loss in voltage conversion by up to one half.

Arctic Sand will be integrated with Peregrine Semiconductor but will continue to operate at its current locations in Burlington, Mass., Santa Clara and Taiwan.

“With the added strengths of Murata and Peregrine, we can bring game-changing innovation to a power electronics market that desperately needs it,” said Gary Davison, chief executive of Arctic Sand, in a statement.

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